SSC SEC Services Corp. (SECUF)

[DeepDive]

Input Capital's value is going to be driven, short term (next few years) by its growth rates (book value; OCF; EPS).

Bulls/INP says - value using CFO multiples, like streaming companies.

Bears says - value as alternates lender, max 1.5 per book value, not streaming as only 6 year contract then need to 'refill' book, like lender.

The one KEY variable underpinning the two is growth.

Growth is slow.

Why? A. Either new/green sales team (solvable) or
B. Market less warm to the idea = smaller opportunity than thought.

Div says we have more capital than we can deploy (sales are not expected to go into hyperdrive mode).

Pay close attention to management coming up with creative but less profitable ways to grow as another Tell the thesis has changed.

This deployment season will tell us a lot about what to expect and how to modify the thesis.

An upside from these prices is reasonable to expect, but right now, there are way better growth stories out there.